Exit Forced Call

Hi everyone! I’m new here and thought it could be cool to share some of my trades so we can all give our thoughts and opinions, no pressure at all. Here’s one I just did:

I bought shares of Kraft Heinz and sold a call against them. The idea is that by expiration I’ll get assigned and the shares will be called away. The call I sold is in the money, so the premium helps cover the loss on the stock price.

I got in at $27.89 and sold the $27 call, which puts me down $0.89 per share on the stock. But the premium I collected was $1.05, and I’ll also get a dividend of about $0.40.

Not going into margin, Greeks, or vol metrics here just to keep it short, but happy to answer if anyone’s curious. 😊